Yahoo Finance Should You Think About Buying Bucher Industries AG (VTX:BUCN) Now?
Bucher Industries AG (VTX:BUCN), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the SWX. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Bucher Industries’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Bucher Industries
Is Bucher Industries Still Cheap?
According to my valuation model, Bucher Industries seems to be fairly priced at around 12% below my intrinsic value, which means if you buy Bucher Industries today, you’d be paying a reasonable price for it. And if you believe the company’s true value is CHF437.61, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Bucher Industries’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Bucher Industries look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 3.3% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Bucher Industries, at least in the short term.
What This Means For You
Are you a shareholder? It seems like the market has already priced in BUCN’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on BUCN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you want to dive deeper into Bucher Industries, you'd also look into what risks it is currently facing. For example - Bucher Industries has 1 warning sign we think you should be aware of.
If you are no longer interested in Bucher Industries, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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